The Hindu Business Line : CAG pulls up Centre for slow progress in power programme

Too many gaps
Total outlay of Rs 40,000 cr for 10th Five-Year Plan
Instances of incorrect financial reporting by States
Objective of reducing AT&C losses not achieved

New Delhi May 18 The Comptroller and Auditor-General (CAG) has pulled up the Centre for slack progress in its key reform tool in the power sector - the Accelerated Power Development and Reform Programme (APDRP).

The performance audit of the APDRP, tabled in Parliament on Thursday, has showed deficiencies in the systems and procedures for release and utilisation of funds under the scheme.

Against the project's total outlay of Rs 40,000 crore - Rs 20,000 crore each for the investment and incentive components - for the 10th Five-Year Plan, the Power Ministry released a total of Rs 6,131.70 crore for 583 projects involving a total project cost of Rs 19,180 crore till March, the report said.

It added that there were instances of incorrect financial reporting amounting to Rs 676 crore by the States.

In addition, instances of irregular diversion of funds amounting to Rs 614 crore and non-return of surplus funds of Rs 53.01 crore have been observed.

The report has noted that the incentive mechanism instituted under APDRP to coax States into initiating reforms has not been successful, with just Rs 1,575.02 crore released as of February 2007 against the 10th Plan provision of Rs 20,000 crore.

The report also said that the primary objective of the APDRP of reducing aggregate technical and commercial losses by nine per cent annually has not been achieved.

It has pointed to "serious deficiencies" in system metering as well as consumer metering.

Besides, it has noted that there are "significant weaknesses" in the project planning, management and implementation processes.

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